Parameter Binding: What happens under the hood?

SqlCommand cmd = new SqlCommand("GetMemberByID");
cmd.CommandType = CommandType.StoredProcedure;
SqlParameter param = new SqlParameter("@ID", memberID);
para.DbType = DbType.Integer;
cmd.Parameters.Add(param);

string sql = "SELECT * FROM tblDomains WHERE DomainName = @DomName AND DomainID = @Did";
Database db = DatabaseFactory.CreateDatabase();
using(DbCommand cmd = db.GetSqlStringCommand(sql))
{
  db.AddInParameter(cmd, "DomName", DbType.String, "xxxxx.net");
  db.AddInParameter(cmd, "Did", DbType.Int32, 500204);

  DataSet ds = db.ExecuteDataSet(cmd);
}

exec sp[underscore]executesql N'SELECT * FROM tblDomains WHERE DomainName = @DomName AND DomainID = @Did',
  N'@DomName nvarchar(9),
  @Did int',
  @DomName=N'xxxxx.net',
  @Did=500204

db.AddInParameter(cmd, "DomName", DbType.String, "'xxxxx.net");

exec sp[underscore]executesql N'SELECT * FROM tblDomains WHERE DomainName = @DomName AND DomainID = @Did',
  N'@DomName nvarchar(10),
  @Did int',
  @DomName=N'''xxxxx.net',
  @Did=500204